Life insurance and Coronavirus

The COVID-19 pandemic has had a huge impact on our daily lives.

From wearing masks to working from home, everyone is slowly adjusting to the ‘new normal’.

Many have also had to make adjustments to their financial planning and have been looking to secure the right financial protection for their loved ones during these uncertain times.

But what impact has Coronavirus had on the life insurance industry?

Thankfully, it’s still completely possible to:

  • Take out a new policy
  • Make a claim for Coronavirus
  • Receive a pay out for death due to Coronavirus
  • Secure an affordable premium price

In this article, we’ll put to rest many common myths surrounding Coronavirus and life insurance, as well as help you understand your life insurance options.

Speak to an expert

If you have any concerns regarding life insurance and Coronavirus, a member of our friendly team will be happy to help.

Whether you’re looking for cover or just need some questions answered, we can provide you with the information you need to make a fully informed decision.

Our award-winning service is FCA registered, fee-free and impartial.


The information in this article is correct as of 17/12/2020. Information regarding the COVID-19 pandemic is ever-changing. With this in mind, we’ll do our best to keep this page up to date.

Please check the Government website for the latest Coronavirus information.

Keep reading for our full Coronavirus life insurance guide…

Can I still buy life insurance during the Coronavirus pandemic?

Yes, it’s completely possible to secure family life insurance during the Coronavirus pandemic.

Insurers have simply added new questions regarding COVID-19 to their underwriting processes to protect themselves against this new risk.

As well as providing the standard information regarding:


You’ll also be asked questions related to Coronavirus, such as:

  • Have you tested positive for Coronavirus?
  • Have you been in close contact with anyone who has tested positive for Coronavirus?
  • Have you been advised to self-isolate?
  • Do you have any symptoms of Coronavirus?

Symptoms can include (but are not limited to) a new and continuous cough, high temperature, loss of or change to taste or smell, etc.

As the underwriting process varies between insurers the questions asked may also vary.

Just because you answer yes to any of these questions doesn’t mean your application will be declined.

If you’ve experienced symptoms of the virus, have tested positive, are awaiting results from a Coronavirus test or have had to isolate within 30 days prior to your application, it’s likely that your application will be postponed (rather than declined).

It’s extremely important to be honest regarding information about Coronavirus symptoms, test results, possible exposure to the virus and isolation requirements at the point of application.

It’s considered insurance fraud to not be completely truthful on your application and it can lead to your selfless investment being wasted as insurers can deny a pay out.

If you have no symptoms and are healthy, it’s likely your application will be accepted with no issues.

The exception to this is an over 50s plan. Due to the nature of the policy, you won’t need to provide any medical information.


Can I buy life insurance if I have Coronavirus?

Yes, you can still purchase a life insurance policy if you have Coronavirus.

It’s a common misconception that you’ll automatically be declined life insurance due to testing positive for Coronavirus.

Instead, insurers are more likely to postpone your application until you’ve made a full recovery.

How long the postponed period will be will depend on the insurer, some may ask you to wait a few weeks, whereas with others it could last a few months.

But rest assured, you’ll still be able to secure cover to protect your loved ones.

Does life insurance cover Coronavirus?

Yes, Coronavirus can be covered by a life insurance policy.

If you have an existing life insurance policy, you’ll be covered for death due to Coronavirus as per the terms and conditions of your policy.

New policies taken out will also cover death due to Coronavirus but claims may be liable to the contestability clause.

This is a clause written into the policy that allows insurers to request more information about the death.

If you pass away due to Coronavirus and your loved ones make a claim, insurers may look into the death to see if Coronavirus was present at the point of application.

If it’s found that the policyholder knowingly had Coronavirus at the point of application but didn't disclose this information, a pay out will be denied. This is known as 'non-disclosure'.

When it comes to life insurance, honesty is always the best policy.

It’s unlikely you’ll be declined for having Coronavirus and it’s completely possible to secure affordable cover after your postponed period has passed.

If you have any concerns, a member of our friendly team can talk you through all of your policy options.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.

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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.

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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.

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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.

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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.

£
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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.

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Your total cover estimate

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Let us find your best quote.

Will there be an exclusion for Coronavirus in my policy?

No, insurers aren’t currently adding Coronavirus as an exclusion in new policies.

However, if your policy was recently taken out, and you pass away, insurers may need to request more information to see if COVID-19 was pre-existing at the time of application.

While it’s rare, some older policies may include a ‘pandemic’ exclusion.

You may wish to check the terms and conditions of your policy or speak to your provider.

What is an exclusion?

An exclusion is a circumstance or situation that’s written into the terms and conditions of your policy, which means in the event of this situation or circumstance happening, a pay out won't be made to your loved ones.

For example, if you have a pre-existing medical condition, an exclusion for this condition (and any related conditions) may be added to your policy.

If you pass away as a result of this condition (or any of the related conditions) a pay out won't be made.

Can I claim for Coronavirus?

Yes, it’s possible for a claim to be made on your life insurance policy if you pass away due to Coronavirus.

Will life insurance pay out for Coronavirus?

Yes, if you pass away due to Coronavirus it’s possible for your loved ones to receive a pay out.

Only in certain rare circumstances will a pay out be denied;

  1. A pandemic clause is written into your policy – some older policies may have a pandemic clause written into the policy, which would mean a pay out can’t be made for Coronavirus. This is a rare exclusion but you may wish to check the terms and conditions of your policy.
  2. Non-disclosure - if you pass away due to Coronavirus and it’s found you had the virus at the point of application but it wasn’t disclosed, insurers can deny a pay out. For this reason, you may want to take a Coronavirus test before you apply. This way there can be no confusion as to whether the virus was present or not during your application.

As long as all the correct information was given at the point of application, it’s completely possible for your loved ones to receive a pay out if you pass away due to Coronavirus.

The pay out received by your loved ones can help to reduce financial stress and help them to meet their new obligations.

A life insurance pay out can take care of:

Life insurance with Coronavirus cover

There’s no life insurance product called ‘Coronavirus cover’.

However, a standard life insurance policy can cover death due to Coronavirus (as well as many other causes of death).

Typically, there are four main life insurance options you can choose from.

These include:

  1. Level term life insurance
  2. Decreasing term life insurance
  3. Whole of life insurance
  4. Over 50s plan

Level term life insurance

Level term life insurance provides a fixed sum assured (pay out amount). You’ll be covered for a specified period of time (this can be up to 40 years) and if you pass away during this time a pay out will be made to your loved ones.

Due to the large pay out potential, level term life insurance can be used to cover large debts (such as an interest-only mortgage), family living costs, as well as funeral expenses.


Decreasing term life insurance

With decreasing term life insurance your sum assured will reduce over time.

You’ll be covered for an agreed period of time and a pay out will be made if you pass away during this time.

Decreasing term life insurance is ideal for protecting a repayment mortgage as you can have your policy term match up with your mortgage term.

This way your sum assured will reduce inline with your remaining mortgage balance.


Whole of life insurance

Whole of life insurance provides lifetime cover and, therefore, guarantees your loved ones a pay out when you pass away.

Your sum assured will remain fixed throughout the lifetime of your policy.

Whole of life insurance is a great option for guaranteeing your loved ones an inheritance.


Over 50s plan

An over 50s plan guarantees acceptance to UK residents aged 50 - 85, with no medical information required.

For this reason, you won’t need to answer any COVID-19 related questions during the application process.

An over 50s plan is a great option for those in this age bracket who have struggled to secure cover in the past (due to Coronavirus or any other pre-existing conditions).

However, due to the unknown risk you pose, it’s likely your sum assured will be capped (typically at around £25,000).

It’s also likely there will be a waiting period added to your policy. This is usually the first 12 - 24 months of your policy where if you pass away due to natural causes, no pay out will be made (however, you’ll be covered for accidental death).

Insurers aren’t currently adding Coronavirus as an exclusion on any new policies, so if you take out any of the above policies, you’ll be covered for death due to Coronavirus (as long as all the information given at the point of application is correct).

Our award-winning team are just a phone call away and will be able to take you through the whole process of securing life insurance, as well as answer any questions you may have.

Why not get in touch for your FREE quotes?

Coronavirus life insurance premiums

It’s unlikely that you’ll be charged more for your monthly premium due to Coronavirus.

Those with existing policies won’t see an increase to their premium, as their premium amount was agreed at the point of application.

It’s unlikely that those taking out new policies will experience inflated premiums due to Coronavirus.

Premiums are still being calculated in the standard way, using information regarding:

  • Your age
  • Your general health and wellbeing
  • Your weight
  • Smoking status
  • Any pre-existing medical conditions

These factors, along with your level and length of cover, will be assessed and your premium will be calculated accordingly.

Life insurance taken out through Reassured starts from as little as 20p-a-day.

Life insurance for key workers

If you’re a key worker, it’s likely you’ll receive some form of cover in the form of an employee benefit (such as death in service).

This will pay out a percentage of your salary should you pass away during your employment with an employer who offers this benefit.

For example, NHS employees who contribute to the NHS pension scheme will have access to death benefits.

Due to the increased risk of catching Coronavirus, frontline NHS and care workers may also benefit from the Coronavirus Life Assurance Scheme.

This offers £60,000 to the families of frontline workers in this scheme who pass away due to Coronavirus.

A personal life insurance policy can help to add an extra layer of protection to ensure all costs are covered for your loved ones.

While death in service and the Coronavirus Life Assurance Scheme offer generous pay outs, it’s unlikely they would cover large expenses such as paying off the mortgage in full.

A personal life insurance policy could help take care of these large costs and ensure your loved ones can pay the rent or mortgage and remain in the family home.

Read our full life insurance for NHS nurses to find out about all of your options.

Coronavirus antibody testing life insurance

It’s not compulsory for you to take a Coronavirus test before you apply for life insurance but you may wish to in order to give the most honest answers during the application process.

Due to new underwriting processes taken on by insurers, you’ll be asked a number of COVID-19 related questions.

By having a recent test result, you can more accurately answer these questions and there’s no risk of non-disclosure

Coronavirus critical illness insurance

Critical illness cover is an additional layer of protection that can be added to a life insurance policy for an additional cost.

It will allow you to make an early claim on your policy if you’re diagnosed with a life-changing illness.

Unfortunately, Coronavirus won’t be on the list of illnesses covered by a critical illness policy.

This is because the Coronavirus is a new strand of illness.

However, if you’ve had Coronavirus which has lead to other complications (such as lung failure, respiratory problems or heart problems), some insurers will allow you to make a claim for this illness (if the illness is listed within your policy).

Each insurer will have a different list of illnesses that they cover within critical illness cover, so you may need to check your policy terms and conditions.

Terminal illness cover

All term policies taken out through Reassured come with terminal illness cover.

This means you’ll be able to make an early claim on your life insurance policy if you’re diagnosed with a terminal illness and are predicted to pass away within 12 months.

Your pay out can be used to fund private medical treatments or you can use the money to enjoy your remaining time with your loved ones.

Coronavirus isn’t classed as a terminal illness and, therefore, you won’t be able to make a claim on your terminal illness cover for Coronavirus.

However, you’ll be protected should you fall ill with a life-threatening illness in the future.

Insurance for Coronavirus

As well as life insurance, you may want to take out additional layers of protection during this unpredictable time. You may want to consider:

  • Income protection
  • Travel insurance

Income protection is a form of financial protection that will make regular income payments if you’re unable to work due to sickness, injury or unemployment.

These payments will often be a percentage of your salary and they can help to ease financial stress if you’re unable to work for a prolonged period of time.

This can be especially beneficial for those who are self-employed and who won’t experience sick pay from an employer or won’t benefit from the government furlough scheme.

If you need to make essential travel trips abroad (for business or personal reasons) travel insurance is essential in protecting you should you fall ill with the Coronavirus (or any other illness) while you’re away.

However, you’ll need to keep up to date with travel restrictions. If you intend on travelling to a country or area that isn’t permitted by the government guidelines, you may not be able to make a claim on your policy.

Travel insurance will help to cover medical expenses such as hospital visits and treatments so you won’t be left out of pocket having to pay for expensive medical care in a foreign country.

We can’t currently compare these forms of cover for you at Reassured.

Life insurance Coronavirus UK - Compare quotes

The coronavirus pandemic in the UK has drawn attention to the importance of having the right financial protection in place to protect your loved ones should the worst happen.

In these uncertain times, many want the peace of mind that their loved ones will be taken care of financially if they were to pass away.

Life insurance is just one of the ways of securing the financial future of your loved ones.

Our FCA registered life insurance broker service has been helping families for over a decade.

We do the hard work for you by comparing life insurance quotes on your behalf.

Even if you have fallen on hard times, our team of experts can find you the most affordable cover.

Why not get in touch for your free, no-obligation quotes?

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